There is a trend among American businesses towards more contractor hiring and less employee hiring, which is creating increasing demand for outsourced finance services ranging from basic bookkeeping to investor financial report preparation.
To satisfy this demand, some companies have packaged various combinations of bookkeeping, tax preparation, financial forecasting, pricing strategy optimization, expense management, payroll management, financial statement preparation, and fundraising assistance as bundled service offerings labeled as “fractional CFO services” or “virtual CFO services”. These can be high-margin offerings, and the market for them is highly fragmented which means there is an opportunity for almost anyone to start a business that provides them.
In this article, I’m going to break down the packages and prices of nine different fractional CFO service providers. Use these as reference points when deciding what niche of businesses to target as customers for your own fractional CFO business and how to package and price your services for them.
1. airCFO
AirCFO is probably the most well known brand in the fractional CFO market. Here’s a screenshot of the airCFO landing page which shows how the company is communicating with its target customers (VC-backed startups).
Nothing fancy — just fulfilling your accounting and tax needs. Here are the packages airCFO offers:
| Target Customer | Base Monthly Price | Package Structure | |
| Launchpad Package | – Funded startups – Raised less than $2 million – Monthly expenses less than $50k | $1,563 | Accounting – Month-end close management – Investor reporting by Day 25 – Async email support People Ops – Payroll management – Payroll compliance guidance – Async email support Tax – 1 Federal return – 1 State return – Year-end meeting |
| Launch Package | – Funded startups – Raised $2-10 million – Monthly expenses of $50-200k | $4,367 | Everything in Launchpad, plus: Accounting – Month-end reporting package – AP & vendor management support – Balance sheet schedule maintenance – Annual controller review & “lite” systems diagnostics Finance – 6 hours of advisory support from a dedicated finance expert each month – Monthly model update and executive summary – Monthly check-in call – Help with quarterly board meeting prep – Annual budget build – Help with key metric tracking setup Tax – Return walkthrough – Estimates based on extension calc People Ops – 10 hours of advisory & support from a dedicated People expert, including: * Federal & multi-state compliance advisory * Onboarding & offboarding support & administration * Basic benefit system administration * People policy and procedure guidance |
| Iterate Package | – Raised $10-30 million – Monthly expenses of $200-400k | $6,883 | Everything in Launch, plus: Finance – Monthly model update & deep-dive analysis – Biweekly check-in call – Ongoing investor relations support – Budget-setting support and budget vs actuals tracking – Detailed cashflow projections – Metric benchmarking – Scenario planning People Ops – 20 hours of advisory and support from a dedicated People expert (total, not in addition to 10 Launchpad hours), including: * Performance management advisory * Annual engagement survey & advisory Tax – Common federal forms: 4562, 1125E, Pg 1 of M-3, and 6765 – 3 state/city returns (total, not in addition to the 1 in Launchpad) – Mid-year advisory meeting – Up to 5 hours of tax advisory/research support/ad-hoc projections |
| Scale Package | – Raised more than $30 million – Monthly expenses over $400k | Custom | Custom |
AirCFO says that most of their clients have raised at least $1 million or are generating over $500k in annual revenue.
2. Paro
Paro advertises by emphasizing the experience of its “carefully vetted” CFOs and the big names of the clients that trust Paro (e.g. JPMorgan, FedEx, Morgan Stanley, the Harvard Business School, General Electric, etc). Those names are plastered on its landing page. The company does not provide a single, clear value proposition on its landing page, instead opting for a list of 12 different types of CFO services that it offers.
| Types of CFO & Strategic Advisory Services | Description |
| Buy-Side M&A | – Analysis of the industry, competitive landscape and company positioning – Identify targets with operations, product lines, service offerings, and geographical footprints to complement the current business |
| Investor Relations | – Tasks related to meeting investors, managing investor communications, and maintaining investor relations – Tight coordination with executive team as well as the accounting and legal departments |
| Go-To-Market Plan | – Assessment of existing financial strategies, plans for new product launches, and market – May include the development of new plans including marketing & sales strategy, budget creation and financial forecasts |
| Business Valuation | – Integrated income statement, cash flow and balance sheet projections and valuation model – Macro, operational and valuation framework scenario analysis |
| Market Research | – Analysis of the Total Addressable Market, assessments of demographics, and the competitive landscape and company positioning – Identify and recommend target markets that align with the companies strategic advantages and priorities |
| Roadmap & Planning | – Data collection, analysis and identification of long-term business goals and objectives – Development of a plan outlining goals, milestones and objectives over a set timeline |
| Systems Assessment | – Document and assess current-state finance and accounting systems – Identify the biggest risks as well as the largest opportunities for improvement |
| Process Assessment | – Document and assess current-state finance and accounting processes as well as identification of the biggest risks and largest opportunities for improvement |
| Employee Benefits | – Apply financial insight and rigor to benefits strategy – Negotiate with benefits vendors and forecast financial implications |
| Raising Debt | – Financial modeling to support a debt fund or bank to lend money – May include 3-5+ years of projects and KPI modeling to demonstrate satisfaction of repayment obligations |
| Fundraising Guidance | – Leadership and skills required to support specific fundraising goals, including but not limited to pitch deck development and supporting investor due diligence |
| Exit Strategy | – Support in identifying exit goals and timelines – Identification of optimum financial and leadership conditions necessary to maximize exit value |
3. Pilot
Pilot targets three types of companies to be its customers:
- Startups
- Consumer goods & retail companies
- Professional services companies (e.g. consulting firms)
And it targets these prospective customers with a simple value proposition:
- “We’re the last accounting firm you’ll ever need to hire.”
Pilot can also help startups claim R&D tax credits and provide financial models in support of 409A valuations.
| Target Customer | Base Monthly Price | Package Structure | |
| Bookkeeping Core Package | – Startups – Pre-revenue – Monthly expenses under $15k | $499 $699 after first year | – Accrual basis bookkeeping – P&L, balance sheet, and cash flow statements (monthly) – Burn rate calculations |
| Bookkeeping Plus Package | – Startups – Revenue-generating | Custom (but starts at $1,500) | Everything in the Core Package, plus more (based on customer revenue model, inventory volume, and entity structure) |
| Basic CFO Package | Startups | $2,925 (billed annually) | – Fully customized financial model including P&L, balance sheet, and cash flow – Budget vs actuals tracking – Headcount & compensation plan – Scenario planning (base case, bear case, bull case) – Industry-specific KPI dashboard – CFO analyzes business performance and extracts key insights |
| Essential CFO Package | Startups | $4,725 (billed annually) | Everything from the Basic CFO Package, plus: – CFO initiates strategic projects to catalyze growth |
| High Touch CFO Package | Startups | $6,750 (billed annually) | Everything from the Essential CFO Package, plus: – CFO deeply integrates with your team to lead data-driven strategies |
4. Orba Cloud CFO Services
Orba offers virtual CFO services to ecommerce businesses, real estate investors, SaaS companies, cannabis companies, and nonprofits.
| Base Monthly Price | Package Structure | |
| Monthly Package | $500 | – Bookkeeping (code & reconcile transactions) – Accrual basis accounting – Monthly financials – Codefine and monitor KPIs – Coordinate external audit and tax work with your CPA as needed |
| Core Package | $2,500 | Everything in Monthly, plus: – Weekly check-in – Invoicing & collections – Bill pay – Payroll – Annual 1099s – Identify growth drivers |
| Awesome CFO (Core Add-On) Package | $4,000 | Everything in Core, plus: – KPI & Metric analysis – Budget & cash flow forecast – Strategic growth recommendations |
Tax work is NOT included in any of Orba’s CFO packages.
5. Xendoo
| Target Customer | Base Monthly Price | Package Structure | |
| Essential Bookkeeping Package | – Monthly expenses up to $50k | $395 | – Weekly bookkeeping for up to 4 bank/credit card accounts – Cash basis – 1 integration |
| Growth Bookkeeping Package | – Monthly expenses up to $75k | $695 | Everything in Essential, plus: – Up to 6 bank/credit card accounts – Cash or modified accrual basis – Semi-annual tax consult – 2 integrations |
| Scale Bookkeeping Package | – Monthly expenses up to $125k | $995 | Everything in Essential & Growth, plus: – Up to 12 bank/credit card accounts – Custom chart of accounts – Bi-weekly calls – Up to 4 integrations |
| Tax Guidance plus Annual & State Tax Return (Bookkeeping Add-On) | Any business | $100 | – Year-round tax support – Year-end financial package |
| Fractional CFO Package | Fast-growing, early-stage startups | $1,500 (many services are not included) | – Revenue forecasting – Cash flow management – Employee expenses and headcount planning – Annual and monthly budgets – Build custom financial strategies – Full stack financial management (end to end for your business) – Financial modeling – Burn rate and runway calculations – Pricing and cost analysis – Fundraising pitch preparation, investor decks, and business plans – Fundraising strategy *Many of the services above are not included in the base monthly fee |
6. VCFO
VCFO is a virtual CFO services, recruiting, and HR services company. Across those categories of services, VCFO has over 5,000 past and present client companies. However, the company is not licensed as a CPA firm in any jurisdiction.
Value proposition:
- Get expert help with fundraising (e.g. through refining your pricing strategy, preparing financial forecasts, and producing investor-friendly records)
VCFO does not provide transparent pricing, however. You have to request a consultation in order to get pricing information.
7. InDinero
| Target Customer | Base Monthly Price | Package Structure | |
| Essential Package | – Early-stage startups | $750 *Only a “starting at” price | – Monthly reconciliations – Employee reimbursements – Inventory reconciliation – Payroll support – P&L and balance sheet reporting – Cash flow statement and forecast – Support of Quickbooks Online or Netsuite – Handling of multiple entities and consolidation – Board reports + presentations – Financial projections + models – Business analytics + KPIs Integrations with: – Quickbooks – Netsuite – Gusto – Bill.com – Stripe |
| Growth Package | – Established companies looking to grow their business | $1,250 *Only a “starting at” price | Everything in the Essential Package, plus: – Strategic finance consulting – International parent/subsidiary management – Exit planning – Budgeting + cash management – Capital raise help – Venture debt financing help – Equity management |
| Custom Package | – Dynamic companies with complex needs | Custom | Custom |
InDinero offers bill pay and expense management in collaboration with Bill.com and Expensify (extra charges may apply).
8. Michigan CFO Associates
Michigan CFO Associates targets Midwest small to medium businesses as customers, rather than fast-growing startups. Many customers are moderately established manufacturing companies with less than $50 million in sales.
| Target Customer | Base Monthly Price | Package Structure | |
| Level 1 Package | Businesses with less than 10 people | $2,100 | – One day a month check up – CFO will set up, measure, and record KPIs – Analyze KPIs and profit points to identify growth opportunities – Create financial models to forecast likely outcomes & present alternatives for growth – Modeling new sales strategies and product offerings to draw in reliable income streams – Budgeting revision to help you adjust your spending to maximize returns and minimize costs |
| Level 2 Package | Small but growing companies | $3,200 | Same as Level 1, with: – Twice a month check up |
| Level 3 Package *Most common level of engagement | not revealed | $6,300 | Same as Level 2, with: – Weekly CFO support |
| Level 4 Package | not revealed | $11,500 | Same as Level 3, with: – Twice weekly meetings when needed (otherwise weekly) |
9. Oak Business Consultant
Oak Business Consultant serves a variety of industries including:
- Farms
- Car dealerships & repair shops
- Construction / contractor companies
- SaaS companies
- Insurance brokerages
- Landscaping companies
- Wholesalers
- Property management companies
- Restaurants
- Bars
- Telecom companies
- Consulting firms
- Hotels
- Financial service companies
- Government agencies
- Manufacturing companies
- Retailers
- Salons
- Medical & dental offices
- Nonprofits
Here are the packages it Oak offers:
| Base Monthly Price | Package Structure | |
| Basic Bookkeeping Package | $450 | – Up to 700 transactions per month – Managing accounts receivable and payable – Payroll processing – Inventory management – Financial statement preparation (balance sheets, cash flow statements, and stockholders’ equity statements) |
| Advanced Bookkeeping Package | $950 | Everything in Basic, plus: – Up to 1200 transactions per month |
| Comprehensive Bookkeeping Package | $1,350 | Everything in Advanced, plus unlimited transactions |
| Virtual CFO Package | Custom | Custom (with a focus on activities that help with fundraising) |